Plunge at the Start of Trading in Asia Triggered Automatic Sell Orders, Creating a 'Domino Effect'

Gold prices slumped to their lowest level in nearly three years Wednesday after a selloff at the start of Asian trading reverberated through trading floors in London and New York.

The most actively traded contract, for August delivery, fell $45.30, or 3.6%, to $1,229.80 a troy ounce on the Comex division of the New York Mercantile Exchange. This was gold's lowest settlement price since Aug. 23, 2010. Gold for June delivery also fell...